Arroyo welcomes sale of RP’s Mirant assets

President Arroyo on Tuesday welcomed the sale of Mirant assets to a consortium led by Tokyo Electric Power Company and Marubeni Corporation of Japan. "This is the peak of business confidence and is clear proof that we are on the runway to economic takeoff on the back of growing political stability," the President said in a statement. She said the sale sealed "the stability of electric power in the Luzon area over the long term." "I would like to thank Mirant for being a superb corporate citizen of our country; and I welcome our Japanese investors as true allies for progress and prosperity," Mrs. Arroyo said. The sale of the Philippines’ stake in Mirant came on the heels of Prime Minister Shinzo Abe’s commitment of huge development assistance to the country. "Our tough economic decisions have driven investor confidence to the peak, and this will continue to break the back of poverty and provide a windfall of jobs and grassroots enterprise," Mrs. Arroyo said. Energy provider Mirant Corp. has reached a deal to sell its Philippine business to a consortium that includes the Tokyo Electric Power Company Inc. for $3.42 billion. The Atlanta-based company said it expects the deal with Tokyo Electric and Marubeni Corp., which also includes working capital, to close in the second quarter of 2007. Mirant said related debt that will be repaid is estimated to be roughly $642 million at closing. The deal is part of Mirant's effort to shed some assets and businesses to return cash to shareholders. Last January, Mirant emerged from bankruptcy — the 11th largest bankruptcy filing in US history at the time of the filing in July 2003. Mirant reduced its work force and shaved billions in debt from its balance sheet as part of its return to the public markets. In June, it rescinded its nearly $8-billion bid to acquire New Jersey-based rival NRG Energy Inc., following NRG's unwillingness to consider a deal. A Mirant-NRG combination would have made it among the largest US power producers. Mirant shares rose 95 cents to $32.17 in morning trading on the New York Stock Exchange. GMANews.TV with reports from the Associated Press